“Mr. Centeno’s claim that ‘we have all learned our lessons’ from the Greek crisis is mealy-mouthed. The Eurozone’s leadership doesn’t seem to have learned anything at all. The Troika’s disastrous handling of the Greek crisis has driven Greece into the worst peacetime depression experienced by any advanced economy in recorded history. […]

But even if Greece manages to meet its targets, there is nothing ‘normal’ about forty-two years of sustained fiscal austerity. Nor does having to maintain such a draconian regime in any way constitute ‘regaining control’. […]

French and German banks were effectively bailed out by their own taxpayers. […]

Bank bailouts are unpopular. It was politically more convenient to blame ‘profligate Greeks’ for the bailout than to admit that French and German banks had lent foolishly, still less that bank regulators had been asleep at the wheel. Even today, the tone of Mr. Centeno’s comments places all responsibility for ensuring there are no further bailouts firmly on Greece. […]

The Eurozone has also failed to take on board the need for active management of balance of payments in a currency union where fiscal transfers are limited. […] Countries like Germany and the Netherlands can run persistently large current account surpluses without sanction.

Running a persistent current account surplus in a currency union is beggar-my neighbour policy. The Eurozone is not as closed as it was prior to the crisis, so the whole bloc is now running a current account surplus, mostly at the expense of the US. But the US is becoming increasingly intolerant of being forced into the role of consumer of last resort. Beggar-my-Atlantic-neighbour is no more sustainable than beggar-my-Aegean-neighbour.”

“‘As a member of the eurozone, Greece has lost the ability to implement an independent monetary policy. The fiscal constraints mean that there are very few tools left with which to boost economic activity,’ [Peter Dolman] said.

Referring to the 2.2 percent primary surplus target after 2022, Dolman said it will be very challenging to meet the forecasts of the European Commission’s Compliance Report in this fiscal environment. ‘At this time, we consider the realistic forecast for real growth in Greece is 1 percent annually. Our own research, based on the historical record, shows that a country cannot maintain a positive primary balance above 1.5 of GDP for such a long period.’”

“Greece is scheduled to exit its marathon bailout this summer after hitting the tough fiscal targets set by its creditors. But the country has done so by raising taxes so high that they are strangling the small businesses that form the backbone of its economy.”